SECURE Act: 2020 Startup Tax Credits Jan 07
The SECURE Act (Setting Every Community Up for Retirement Act of 2019) has made it less expensive for a small business to establish and administer a new plan. Effective January 1, 2020 (so for any plan that is established in 2020 and beyond) the tax credit is capped at $250 times the number of non-highly compensated employees eligible to participate in the plan, up to a $5,000 maximum but never less than $500. The credit is limited to 50% of the start-up costs and can be used for three years.
Who is considered a small business? Generally, one with less than 100 employees. 2020 should be a great year to start a retirement plan!
Don’t have a plan with us? We can fix that! Give us a call if you are a business or a plan advisor and we’ll be glad to help.